M&As: Aditya Birla acquires US specialty chemicals facility from Cargill; LyondellBasell to divest four European plants to private equity firm Aequita

Indian conglomerate Aditya Birla Group has agreed to acquire a manufacturing facility from Cargill Inc, its first entry in the US chemicals market. The company will buy a 17-acre specialty chemical manufacturing facility in Dalton, Georgia, as part of its strategy to expand operations in the US chemical sector. The transaction adds to the group’s investments in the US, which now total over US$15 billion. Financial terms of the deal weren’t disclosed.

The facility, which produces formulated resins, curing agents, reactive diluents, and polyaspartic resins for marine, industrial coatings, and flooring applications, will continue current operations under Aditya Birla ownership. These products are sold under the brands ChemCure, ChemMod, Altor, Acme Shield and ChemRes.

The acquisition was made through Aditya Birla Chemicals (USA), a wholly owned subsidiary of Aditya Birla Chemicals (Thailand). With this move, the group adds chemical manufacturing to its portfolio of US businesses, which already includes Novelis and Birla Carbon. The Dalton facility currently has a capacity of 16,000 tonnes/year, with plans in place to increase output to over 40,000 tonnes in the next two years.

Fifty employees from the existing plant have been absorbed into Aditya Birla’s Advanced Materials business. The company has indicated that it will make further investments at the site and introduce advanced technologies from its global network of operations.

In addition to continuing production of existing chemicals, the Advanced Materials division plans to introduce new products for the automotive, renewable energy, and aerospace sectors. These include proprietary chemistries that enable recycling of epoxy composites used in wind turbine blades, pressure vessels, and sporting goods.

The group stated that establishing a local manufacturing presence in the US will allow closer collaboration with regional customers and support development of industry-specific solutions. The move is intended to strengthen the company’s ability to serve key growth sectors through domestic manufacturing.

In other news, chemical firm LyondellBasell (LYB) announced that it has entered into an agreement with German private equity firm Aequita for the sale of four of its olefins & polyolefins assets and associated business in Europe. The sites to be sold have been part of the previously announced European divestment assessment and are located in Berre (France), Münchsmünster (Germany), Carrington (UK), and Tarragona (Spain).

The assets and business to be acquired by Aequita include integrated and non-integrated sites within LYB’s European olefins and polyolefins business, as well as supporting central functions based at the company’s Rotterdam headquarters and various locations. The sites together represent a scaled olefins and polyolefins platform strategically located in proximity to a longstanding customer base and with access and connectivity to key infrastructure, the company said.

“This contemplated transaction is a significant step in LYB’s transformation to Grow and Upgrade our Core. We are committed to operate our assets safely and reliably throughout this process and will continue to support our customers, employees and other key stakeholders,” said Peter Vanacker, LyondellBasell CEO. “Europe remains a core market for LYB and one we will continue to participate in following this transaction with more of a focus on value creation through establishing profitable leadership in circular and renewable solutions.”

“The acquisition of these assets from LYB marks another important step in expanding our industrial footprint,” said Christoph Himmel, Managing Partner at Aequita.

The agreement entered into between LyondellBasell and Aequita is a put option deed under which Aequita has committed to enter into an agreed form purchase agreement if LyondellBasell exercises its put option, after conclusion of certain works council consultation processes.

Closing of the proposed transaction is currently expected in the first half of 2026, subject to the completion of the information and consultation processes with the relevant employee representative bodies in accordance with applicable laws, as well as regulatory and other customary closing conditions.

Munich-based industrial group Aequita invests in special situations, including corporate carve-outs, successions, and transformational situations across Europe. Its current portfolio generates more than EUR3.5 billion in revenues. 

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